OPEC+ Increases Oil Production as Risk of Strait of Hormuz Disruption Rises
Jakarta, Kompas.com — The group of oil-producing nations in OPEC+ has decided to increase global oil production starting from April 2026.
The increase in oil production was agreed upon amid rising geopolitical tensions in the Middle East, which have driven a surge in global energy prices.
The decision was made during a virtual meeting of eight OPEC+ member nations on Sunday, 1 March 2026. The countries involved in the production adjustment are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
These eight nations had previously announced additional voluntary production adjustments in April and November 2023.
“In considering stable global economic prospects and healthy market fundamentals currently reflected in low oil inventories, participating countries have decided to continue the gradual return from additional voluntary adjustments of 1.65 million barrels per day announced in April 2023,” according to an official OPEC+ statement.
OPEC+ affirmed that the return of 1.65 million barrels per day in production can be implemented partially or in full, depending on market conditions. The process will also be carried out in stages.
Furthermore, member nations also expressed their collective commitment to uphold the Declaration of Cooperation, including additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC).
The next meeting to review market conditions is scheduled for 5 April 2026.
The decision to increase oil production occurs amid a surge in global energy prices following new conflict in the Middle East.
Previously, global oil prices had strengthened throughout the year and reached $73 per barrel on Friday, or approximately 1.23 million rupiah per barrel, marking the highest level since July.
The price increase has been triggered by attacks by the United States and Israel against Iran, which sparked a fresh escalation of conflict in the Middle East region.
Ajay Parmar, Director of Energy and Processing at ICIS, stated that the primary factor driving the oil price increase is the potential closure of the Strait of Hormuz, a strategic shipping route that serves as the primary pathway for global oil trade.